Question

For each of the following, compute the present value: (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 14 Interest Rate Future value 8 %$ 14,551 14 42,557 15 877,073 8 541,164 5 30 35 l

Answer 1

CALCULATION OF PRESENT VALUE FROM FUTURE VALUE
We can calculate by applying simple formula that is:
A=P(1+r/100)^n
here
A= future value
P=present value
r=rate of interest
n=no. of year

now lets calculate present value
1. 14551=p(1+8/100)^14 = 4945.05
2. 22102.77
3.13246.48
4.33601.38

a. CALCULATION OF TIME IN WHICH YOUR ANOUNT WILL BE DOUBLED
The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.
The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself.
HENCE, AS PAR THIS PROVISION THE ESTIMATED TIME FOR DOUBLING YOUR AMOUNT AT 6.9% INTEREST RATE WOULD BE 72/6.9=10.33 YEARS

b.CALCULATION OF TIME IN WHICH YOUR AMOUNT WILL BE QUADRUPLE
Rule of 114 can be used to determine how long it will take an investment to triple, and the Rule of 144 will tell you how long it will take an investment to quadruple.
HENCE, AS PAR THIS PROVISION THE ESTIMATED TIME FOR QUADRUPLE YOUR AMOUT AT 6.9%
INTEREST RATE WOULD BE 114/6.9 = 16.5 YEARS

HERE WE GO ON THE NEXT ANSWER
A perpetual annuity, also called a perpetuity, promises to pay a certain amount of money to its owner forever. A classic example would be that of a perpetual bond, which promises to pay interest each year, for eternity (or for as long as the borrower can afford to pay). Historically issued by governments, companies like Volkswagen have issued perpetual bonds to raise money at low interest rates.
Though a perpetuity may promise to pay you forever, its value isn't infinite. The bulk of the value of a perpetuity comes from the payments that you receive in the near future, rather than those you might receive 100 or even 200 years from now.

Calculating the present value of a perpetual annuity

We can use a simple formula to calculate the present value of a perpetuity annuity. This formula will tell us what a perpetuity is worth based on a discount rate, or a required rate of return.

Present Value of a Perpetuity = Annual Payment ÷ Discount Rate
= $250/3.6%
=6944.44